Wynnstay Group reports 22.4% EBITDA growth in 2018 and 18.4% Revenue growth
23 Jan 2019 • About Wynnstay Group (
$WYN) • By InTwits
Wynnstay Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.7% in FY2018 vs. 2.6% in FY2017 vs. 2.6% in FY2014
- Wynnstay Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has business model with low profitability: ROIC is 9.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 18.4%. During FY2014-FY2018 Revenue growth bottomed in FY2015 at -8.7% and was accelerating since that time. EBITDA Margin showed almost no change in FY2018.
Gross Margin showed almost no change in FY2018. During FY2014-FY2018 Gross Margin topped in FY2016 at 15.6% and was declining since that time. SG&A as a % of Revenue showed almost no change in FY2018.
Net Income margin increased slightly on 1.7 pp from -0.072% to 1.7% in FY2018.
Investments (CAPEX, working capital and M&A)
Wynnstay Group's CAPEX/Revenue was 0.50% in FY2018. The company showed almost no change in CAPEX/Revenue from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 0.59%.
Return on investment
The company operates at low ROIC (9.9%) and ROE (8.7%). ROIC increased slightly on 1.6 pp from 8.3% to 9.9% in FY2018. ROE increased on 9.1 pp from -0.33% to 8.7% in FY2018. During the last 5 years ROIC bottomed in FY2016 at 8.0% and was growing since that time. During FY2014-FY2018 ROE bottomed in FY2017 at -0.33%.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from -0.4x to 0.1x in FY2018. Debt jumped on 73.6% while cash dropped on 25.1%.
Wynnstay Group has no short term refinancing risk: cash is higher than short term debt (171.8%).
Valuation and dividends
The company's trades at EV/EBITDA 6.4x and P/E 10.4x.
Financial and operational results
FY ended 30 Nov -0001
Wynnstay Group ($WYN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 413.6 | 377.4 | 368.1 | 390.7 | 462.7 | 18.4% |
| Gross Profit | 53.2 | 55.5 | 57.4 | 52.9 | 61.7 | 16.7% |
| SG&A | | 4.7 | 4.9 | 5.3 | 5.9 | 10.5% |
| EBITDA | 10.7 | 11.1 | 10.1 | 10.3 | 12.6 | 22.4% |
| Net Income | 6.7 | 6.7 | 5.8 | -0.3 | 7.7 | |
Balance Sheet
|
|---|
| Cash | 9.0 | 9.8 | 10.1 | 8.9 | 6.7 | -25.1% |
| Short Term Debt | 3.9 | 3.6 | 2.6 | 2.5 | 3.9 | 54.7% |
| Long Term Debt | 2.3 | 4.0 | 3.2 | 1.9 | 3.8 | 98.6% |
Cash flow
|
|---|
| Capex | 2.5 | 1.8 | 2.7 | 2.0 | 2.3 | 14.5% |
Ratios
|
|---|
| Revenue growth | 0.0% | -8.7% | -2.4% | 6.1% | 18.4% | |
| EBITDA growth | -3.7% | 3.6% | -8.8% | 1.5% | 22.4% | |
|
|---|
| Gross Margin | 12.9% | 14.7% | 15.6% | 13.5% | 13.3% | -0.2% |
| EBITDA Margin | 2.6% | 2.9% | 2.8% | 2.6% | 2.7% | 0.1% |
| SG&A, % of revenue | | 1.2% | 1.3% | 1.4% | 1.3% | -0.1% |
| Net Income Margin | 1.6% | 1.8% | 1.6% | -0.1% | 1.7% | 1.7% |
| CAPEX, % of revenue | 0.6% | 0.5% | 0.7% | 0.5% | 0.5% | -0.0% |
|
|---|
| ROIC | 10.0% | 9.7% | 8.0% | 8.3% | 9.9% | 1.6% |
| ROE | 9.0% | 8.3% | 6.9% | -0.3% | 8.7% | 9.1% |
| Net Debt/EBITDA | -0.3x | -0.2x | -0.4x | -0.4x | 0.1x | 0.5x |
Peers in Food Producers
Below you can find Wynnstay Group benchmarking vs. other companies in Food Producers industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ukrproduct Group ($UKR) | -38.9% | -36.8% | 0.2% | 51.2% | |
| Narborough Plantations ($NBP) | | 3.5% | 0.5% | 38.2% | |
| R.E.A.Hldgs ($RE.B) | 13.9% | -28.1% | -12.4% | 26.5% | |
| Tate & Lyle ($BD15) | | -15.0% | 0.6% | 16.9% | -1.6% |
| Mhp Sa ($MHPC) | | -14.2% | -4.0% | 13.4% | |
| |
|---|
| Median (19 companies) | 2.0% | 1.3% | 0.6% | 7.3% | 6.5% |
|---|
| Wynnstay Group ($WYN) | | -8.7% | -2.4% | 6.1% | 18.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Narborough Plantations ($NBP) | 59.7% | 54.6% | 56.1% | 63.0% | |
| Walcom Group Ltd ($WALG) | 62.2% | 60.5% | 58.8% | 54.6% | |
| Kakuzi ($KAKU) | 33.0% | 49.2% | 46.4% | 44.7% | |
| Unilever ($ULVR) | 41.4% | 42.2% | 42.7% | 43.1% | |
| Produce Investments ($PIL) | 33.5% | 36.4% | 37.9% | 35.7% | 37.8% |
| |
|---|
| Median (17 companies) | 32.7% | 24.9% | 26.8% | 26.0% | 19.2% |
|---|
| Wynnstay Group ($WYN) | 12.9% | 14.7% | 15.6% | 13.5% | 13.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Narborough Plantations ($NBP) | 39.6% | 37.4% | 40.8% | 48.6% | |
| Mhp Sa ($MHPC) | 37.0% | 38.8% | 37.0% | 35.3% | |
| Kakuzi ($KAKU) | 11.8% | 29.4% | 31.8% | 32.7% | |
| R.E.A.Hldgs ($RE.B) | 33.2% | 31.1% | 22.9% | 20.7% | |
| Unilever ($ULVR) | 19.4% | 16.8% | 18.0% | 19.8% | |
| |
|---|
| Median (19 companies) | 11.8% | 13.8% | 11.2% | 13.7% | 4.8% |
|---|
| Wynnstay Group ($WYN) | 2.6% | 2.9% | 2.8% | 2.6% | 2.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| R.E.A.Hldgs ($RE.B) | 11.8% | 17.4% | 39.3% | 32.8% | |
| Ros Agro ($AGRO) | 7.3% | 15.3% | 19.7% | 21.9% | |
| Cherkizovo Group OJSC ($CHE) | 9.7% | 12.2% | 10.4% | 10.9% | |
| Kakuzi ($KAKU) | 22.0% | 24.9% | 13.7% | 10.3% | |
| Real Good Food ($RGD) | 6.3% | 1.4% | 6.4% | 10.0% | 8.4% |
| |
|---|
| Median (19 companies) | 4.8% | 5.0% | 5.0% | 4.7% | 3.5% |
|---|
| Wynnstay Group ($WYN) | 0.6% | 0.5% | 0.7% | 0.5% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Unilever ($ULVR) | 29.9% | 26.0% | 24.3% | 24.6% | |
| Mhp Sa ($MHPC) | 17.6% | 17.6% | 16.1% | 17.6% | |
| Kakuzi ($KAKU) | 4.3% | 17.4% | 15.8% | 15.6% | |
| Tate & Lyle ($BD15) | 13.2% | 1.8% | 7.2% | 12.1% | 14.4% |
| Kerry Group ($KYGA) | 16.6% | 15.8% | 12.8% | 11.9% | |
| |
|---|
| Median (20 companies) | 12.4% | 8.9% | 8.0% | 8.1% | 5.9% |
|---|
| Wynnstay Group ($WYN) | 10.0% | 9.7% | 8.0% | 8.3% | 9.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 1.7x | | 241.4x | 29.9x | |
| R.E.A.Hldgs ($RE.B) | 3.9x | 7.2x | 10.6x | 10.8x | |
| Ukrproduct Group ($UKR) | 3.4x | | 17.7x | 6.2x | |
| Zambeef Products ($ZAM) | 4.8x | 3.0x | 2.1x | 4.0x | 2.0x |
| Ros Agro ($AGRO) | 0.6x | 1.8x | 1.9x | 3.7x | |
| |
|---|
| Median (17 companies) | 1.6x | 1.8x | 1.8x | 2.0x | 0.9x |
|---|
| Wynnstay Group ($WYN) | -0.3x | -0.2x | -0.4x | -0.4x | 0.1x |
